A new schedule "BA :Details of Bank account held in India at any time during previous year"

What are the details has been asked in new schedule BA:Bank accounts

In this schedule following details has been asked

Number of Bank account held by you during previous years (whether open or closed )

Then account wise details is to be given

Sr no

IFSC code of Branch'

Name of Bank

Name of the joint holder(s)

Account number

Account balance at the end of the previous year

In Instruction sheet attached to Income tax return , explain the new bank account schedule as under

This schedule is mandatorily to be filled. The details of all bank accounts held (including in joint names) at any time during the previous year need to be reported. In case the account is closed during the year, in the column for account balance as on 31st March mention "closed".

Ans :All Bank accounts held in India is to be reported including closed during the year.

Ques: Me and my wife has one Joint account ,I have reported the account in my return , whether the same accounts also required to be reported in wife,s return?

Ans : Yes , this has to be reported in your wife's return also.

Ques : Which type of account to be reported ?

Ans:There are many type of DEPOSIT accounts generally operated in Indian Banks

Saving Account

Current Account

Fixed deposit (FD)

Recurring deposit account(RD)

The type of account has not been specified in schedule BA of ITR forms as well as instruction attached to the new return form.In our view we should report only saving account and current accounts . In our view year end balance is not generally available in FD and RD accounts and if CBDT intentions are to get account details of FD and RD account information then they should have column such as Amount deposited , Period , Maturity amount. Benefit of doubt is available to assessee.

The wording of instruction has used the words "all Bank accounts " and in general meaning "all Bank accounts" also Includes LOAN Accounts Like Overdraft ,Cash credit ,term loan.But we don't think so that their intentions are to collect information of loan account also.

Furthermore in account wise details they have used the word "joint holder(s)" and holder word is generally used for Deposit accounts ,so we can assume that information for loan accounts has not be en sought.

However ,clarification from CBDT ,serve the purpose.

Ques:Whether account of Minor is to be reported ?

Ans :Though there are no clear cut instruction but in want of the same one should not report the same in the Income tax return.

Why the new schedule BA-Bank Account has been Introduced ?

Only CBDT can tell us what are their purposes , we can only speculate .Many newspapers have reported that these steps are to unearth black Money .But is it so ? do you think so ? please try to answer following answer

Govt has asked us to report Balance on last day of the year ,Can anyone judge transaction during the year from mere revealing of closing balance?

Do you think Black money holders operate through Banks?

Do you think Black money holder even bothered to file Income tax return ?

Govt is scrutinise only 1% return of total filed then whether additional details should not be asked only from persons selected for scrutiny ?

Whether Govt does not already have details of person depositing large cash amount in Banks and other transactions reported through AIR (annual Information report ) filed by Banks ?

Don't you think it is a penalty for Honest taxpayer for the sake of Taxchors ?

Closing Comment

Few years back, Govt has introduced high value transaction to be reported in Income tax return under heading "AIR(annual information report )" like cash deposit over 10 lakh , property over 30 lakh , Mutual funds investment over 2 lakh ,credit card payment over 2 lakh and many others .But withdraw the AIR information schedule from income tax return wef AY 2011-12 ,citing the reasons that CBDT has many others ways and means to collect information on high value transaction and they may use collected information,whenever required.

Now open question remains here " What have changed in three four years and changed the opinion of CBDT to start asking similar information again when they already have the same from alternate sources ?"

In our view,if the purpose of asking of this information is to unearth black money then it will not be completely fulfilled by asking closing balance of Bank account . CBDT should immediately review the situation again and should try other means and ways to check the menace of black money.

However "honest taxpayers" should not upset himself and do not feel harassed while providing such information in ITR Forms and try to file true and correct information as far as possible.